Many younger consumers too optimistic about financial future
March 25, 2008
A recent report claims that many younger consumers in the UK are too optimistic about their financial futures, fuelling speculation that many are not educated enough when it comes to financial matters. The report showed that many of the consumers interviewed – aged between 11 and 19 – had very high hopes when it came to their financial future, with many expecting to be in high paid jobs with a home, car, and no debt by the time they were in their mid twenties.
The survey involved polling 8500 youngsters about their beliefs in relation to their financial futures, and around three quarters of them expected to own their own car by the age of twenty one. Half of those surveyed expected to start paying off any student debt that they accrued whilst they were still at university, and a further third expected to accrue no debt at all in the future.
The survey was carried out by NatWest, and an official from the bank stated: ‘A hopeful generation of young people is not necessarily a bad thing however, a practical and realistic approach is crucial to equipping the next generation with the skills and knowledge they need to face the financial challenges ahead of them. Ultimately, the more young people are exposed to financial issues, and the younger they become aware of them, the more likely they are to become responsible, forward-planning adults who manage their finances confidently and effectively.’
As part of the survey the youngsters were asked to identify the cheapest loan option from a choice of four, and three quarters of them were unable to do this, which experts have stated proves that further financial education is required for the younger generation.
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